The Competition Commission of India plans to call on shipping lines engaged in the Europe-Asia trade to refrain from fixing freight rates and issuing advisories to members on freight rates.
It is expected that the request will be honoured by carriers in spite of the Commission lacking formal regulatory powers, particularly as freight rates have risen by 90 per cent in some trades since the start of the year, and by 200 per cent to Europe, said a report in the American Shipper.
This comes ahead of a ban in Europe on liner shipping conferences after October 17, to prevent ocean liners acting against the spirit of free market competition.
However, industry experts warn that the Commission's demand may have little affect on rates given that they are imposed to offset rising operational costs for the shipping lines, especially bunker fuel prices.
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